I do not believe we are taking an unreasonable action in today’s environment. We are not swimming in money that can be used in the day-to-day operations of the League. The significant majority of the investment portfolio is restricted either by donor restriction, life membership capital requirements, or board action. At the end of 2019, the amount of unrestricted net assets was about $4.3 million (a good approximation, but not finalized yet). That is the number that matters. Through the end of March, 2020 our investment portfolio lost $3.1 million. While some of that has been recovered in April, we are still materially underwater for 2020. I also believe that we will retest the March lows in the next few months. Current estimates of the negative effect of Covid to our income statement is $644,000. The loan will offset what we currently think that shortfall will be. However, none of us know how long this will last or how deep it will go. With estimated unemployment rates of 15+% and an increasingly-likely slow “U-shaped” recovery, at best, I am concerned that our estimated membership and advertising shortfall estimates may end up worse than anticipated. We are not a public company. Our primary revenue streams are memberships, publications, advertising, and donations. All of those streams are down and under continued stress right now and will continue to be under stress for quite some time. We had BETTER be seeking options and taking actions to shore up the income statement. We have a fiduciary duty to the organization, our employees, and our members to do so. Rick, K7GM Frederick (Rick) Niswander, PhD, CPA, CGMA Professor of Accounting Bate 3110 East Carolina University Greenville, NC 27858 From: arrl-odv <arrl-odv-bounces@reflector.arrl.org> On Behalf Of Richard Norton via arrl-odv Sent: Monday, May 4, 2020 2:32 PM To: Arrl-odv <arrl-odv@arrl.org> Subject: [arrl-odv:30247] Government Paycheck Protection Program Loan? This email originated from outside ECU. The League's upper management is to be commended for becoming aware of the federal government Paycheck Protection Program, filing a loan application immediately, and securing a potential loan. A question that we should all be considering is - should we really be accepting this money? There has been considerable negative publicity about these loans going to companies such as Ruth's Chris Steakhouses and Shake Shack, to the point where the companies returned the money A recent Los Angeles Times article gave bad publicity to private schools receiving loans, although they are generally 501(c)(3)'s. See https://www.latimes.com/california/story/2020-04-30/coronavirus-private-scho... One school was mentioned had an endowment of $17.4 million in 2017. The League's endowment is larger than that. I would have trouble defending why society is better served by the ARRL getting this, rather than having it going to 20 or 40 really small businesses. I'm not sure we should accept this. I'm not prepared to go on television defending it. This ARRL is swimming in money. I am not introducing any motions to do anything. I simply felt you should consider how we may be acting with respect to the rest of our society today's stressful climate. 73, Dick, N6AA